Biofuel Bunker Snapshot: Bio-LSMGO prices plunge in major ports
Rotterdam’s B30-LSMGO drops below $800/mt
UCOME freight to Singapore gains
Chinese UCOME producers face margin pressure
Rotterdam
Prima Markets' assessed POMEME and UCOME barge prices for the ARA region have gained $15/mt on the week. But Rotterdam and the broader ARA region’s B30 bio-bunker prices appear to have tracked movements in conventional fuels more closely over the same period.
Rotterdam’s B30-VLSFO (HBE) price has inched up by $1/mt week-on-week. An $8/mt increase in ENGINE’s pure VLSFO price has provided some upward momentum, but a $4/mt climb in Dutch HBE rebates for marine B30 limited further gains.
In contrast, the port’s B30-LSMGO (HBE) price has tumbled $36/mt, largely reflecting a steep $34/mt slide in ENGINE’s LSMGO benchmark.
The weaker LSMGO market also appears to have pressured the wider ARA region’s B30-LSMGO (UCOME) price, which has fallen $30/mt over the week.
Singapore
Singapore’s biofuel blends also seem to have closely tracked conventional fuel benchmarks in the past week. Singapore’s UCOME-based B30-VLSFO has eased $1/mt, almost mirroring a modest $3/mt retreat in pure VLSFO.
Singapore’s B30-LSMGO (UCOME) price has slumped $58/mt over the week, in line with a heavy $68/mt decline in the port’s LSMGO benchmark.
A softer $8/mt move in Prima’s UCOME FOB China marker and a $3/mt freight increase for UCOME cargoes moving from China to Singapore appear to have helped limit an even deeper slide.
Traders have not seen fresh inquiries for Chinese UCOME, “with the open market still described as very quiet", Prima reported. Recent price assessments point to “margin struggles” for Chinese UCOME producers, it added.
Other bio-bunker news
ExxonMobil Marine has started supplying FAME-based bio-HSFO and bio-LSMGO blends of up to B30 in the UK’s ports of Plymouth, Portland, Poole, Southampton and Portsmouth. Deliveries will be made by barges.
Brazil’s state-owned bunker supplier Petrobras delivered B24 blend to three vessels at the São Sebastião waterway terminal in Brazil. The biofuel component was supplied by Petrobras Biocombustível.
By Konica Bhatt
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